India: Iron ore concentrate prices continue to slide down as buyers hold back purchases

Iron ore concentrate prices continued their downward trend this week amid falling pellet and iron ore prices.

Meanwhile, buyers have adopted a wait-and-watch mode on more price-cut expectations. SteelMint’s index for Fe63% concentrate prices currently stands at around INR 3,250/tonne (t) exw, down INR 200/t w-o-w.

However, a deal of around 10,000 t of concentrates was recorded in this publishing window, which was taken into consideration in the T1 trade for the index.

Factors weighing on iron ore concentrate prices

• Drop in pellet prices on lower bids: SteelMint’s bi-weekly domestic pellet (Fe 63%) index, PELLEX, stood at INR 7,900/t DAP Raipur on 14 June 2022, down by around INR 100/t compared to the last assessment on 10 June. Buyers are still showing a lack of interest in buying pellets at these prevailing rates. There is a disparity between bids and offers by around INR 300-400/t. As per market participants, the market may fall further owing to sluggish demand and weak sentiments. Also, with export bookings remaining absent, pellet players too have lowered capacity utilisation.
• Iron ore prices drop further by INR 300/t: SteelMint’s weekly Odisha iron ore fines index (Fe 62%) fell further by INR 300/t w-o-w to INR 3,300/t ex-mines. Many buyers are still reluctant to buy the material under the current uncertain market conditions amidst the expectation of a price drop in the short term, a fall in pellet and sponge iron prices and lower plant capacity utilisation.

Outlook

Iron ore concentrate prices are likely to remain under pressure amid falling pellet and iron ore prices. Also, as buyers are holding back purchases, offers may see some correction in the near term.

To know more about, Rising market share of India iron ore concentrates

Iron ore and pellets conference: SteelMint Events will be hosting the 5th Indian Iron Ore & Pellet Summit on 3-4 August, 2022 at The Lalit, New Delhi. The conference will discuss key issues being faced by the iron ore and pellets industry in India. The focus will be on market dynamics, policy-related changes, growth challenges and enablers, sustainability and decarbonisation goals, the way forward and many more talk points.